The ICSI, which measures expenditure across all payment types (cash, cheques and electronic payments), pointed to a further reduction in spend during October. Down 1.4% year-on-year, the decline was less marked than the 2.1% seen in September but that said, expenditure has now fallen on a monthly basis in five of the past six months.
Face-to-Face spending continued to fall. At 2.6% year-on-year, the rate of decline was broadly similar to that seen in the previous month (2.8%).
Recreation & Culture spend decreased for the first time in six months, by 2.0%, while further reductions were seen in Food & Drink (down 0.3%).
“Halloween failed to provide a boost this year, with the report indicating a slowdown in consumer spending during October” said Philip Konopik, Ireland’s Country Manager for Visa, “as half of the sectors monitored posted falls in expenditure.
“The Irish retail community will be hoping for a change in fortune in the run-up to Christmas,” he concluded.
Andrew Harker, Associate Director at IHS Markit, added, “Spending trends remained subdued at the start of the final quarter of the year with a lack of confidence among consumers leading them to rein in their spending. Retailers will be hoping that the upcoming Black Friday and Christmas periods can provide a shot in the arm to households and help support a recovery in spending.”